Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income tax bracket.Laura is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to deemthe wedding worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places.IncomeTax rate$0-$10,0005%$10,001-$30,00010%20%$30,001-$50,000$50,001+50%What is the marginal tax rate associated with taking on this wedding?50What is Laura's average tax rate if the extra wedding is accepted?0.1636

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Asked Dec 13, 2019
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Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income tax bracket.
Laura is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to deem
the wedding worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places.
Income
Tax rate
$0-$10,000
5%
$10,001-$30,000
10%
20%
$30,001-$50,000
$50,001+
50%
What is the marginal tax rate associated with taking on this wedding?
50
What is Laura's average tax rate if the extra wedding is accepted?
0.1636
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Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income tax bracket. Laura is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to deem the wedding worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places. Income Tax rate $0-$10,000 5% $10,001-$30,000 10% 20% $30,001-$50,000 $50,001+ 50% What is the marginal tax rate associated with taking on this wedding? 50 What is Laura's average tax rate if the extra wedding is accepted? 0.1636

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Expert Answer

Step 1

1) Marginal tax rate = 50%

Laura was earning a basic salary of $50,000 as an event planner and when Laura considers taking an additional wedding that will increase his income by $5000. His new total before tax income will be $55,000.

Now, Laura is under 50% tax bracket. So, the marginal tax rate associated with taking an additional wedding is 50%.

Step 2

2) The total tax is calcu...

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5 10 10000 x- +(30000 – 10000) × 100 100 Total Tax = 20 + 50000 × 100 50 + (50000 – 30000) × 100 Total Tax = 500 + 2000+4000 + 2500 Total Tax = $ 9000

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